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BA2020 chapter 8 Answer Key

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Key Terms
#1 Dividing the required work among a group of employees is called: A. departmentalization. B. delegation of responsibility. C. division of labor. D. separation of control. C. division of labor
#2 The concept of ____________ suggests that as a firm produces more, the average cost of goods produced goes down. A. natural growth B. survival of the fittest C. cost enhancement D. economies of scale D. economies of scale
#3 Henri Fayol and Max Weber are best known for their contributions to: A. production theory. B. marketing theory. C. organization theory. D. finance theory. C. organization theory
#4 ______________ organizations are characteristic of many layers of management and function with well-defined rules and procedures. A. Matrix B. Inverted C. Ordered D. Bureaucratic D. Bureaucratic
#5 Bill, a financial manager at Carlyle Bank and Trust always strives to treat each subordinate with respect and fairness. Bill's treatment of employees is an example of Fayol's principle of: A. unity of command. B. equity. C. empowerment. D. order. B. equity
Structure
#1 A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that person. A. hierarchy B. oligarchy C. inverted organization D. informal organization A. heirachy
#2 __________ believed that managers were trustworthy and companies would do well if employees simply did what they were told. A. John Keynes B. Adam Smith C. Peter Drucker D. Max Weber D. Max Weber
#3 Max Weber used the term ________ to describe middle managers whose job was to implement the orders of top management: A. management B. autocrats C. staff personnel D. bureaucrats D. bureaucrats
#4 The line of authority that moves from the top of a hierarchy to the lowest level is called the: A. chain of logic. B. chain of command. C. organizational design. D. delegation of contingent authority. B. chain of command
#5 An organization that consists of many layers of management is referred to as a(n) ____________ organization. A. flat B. wide C. tall D. deep C. tall
Authority and Culture
#1 _______________ means that decision-making authority is delegated to lower-level managers and employees. A. Uniformity of authority B. Decentralized authority C. Specification of authority D. Standardized authority B. Decentralized authority
#2 The optimum number of subordinates a manager can supervise is referred to as the: A. manager-subordinate ratio. B. chain of command. C. employee quota. D. span of control. D. span of control
#3 Due to more emphasis on empowerment and more talented and better-educated lower level management, span of control in organizations has ___________. A. increased B. decreased C. become an obsolete term in organization design D. led to tall organizations A. increased
#4 In a(n) _____________ organization, decision-making authority is concentrated at the top level of management. A. bottom-up B. decentralized C. inverted D. centralized D. centralized
#5 The widely shared values within an organization that provide unity and cooperation to achieve common goals is together known as the: A. normative matrix. B. predefined group values. C. ethical system. D. organizational culture. D. organizational culture
Organization
#1 The ________ an organization's structure, the ________ the span of control. A. flatter; wider B. flatter; narrower C. taller; wider D. taller; flatter A. flatter; wider
#2 An organization with only a few layers of management is known as a(n): A. tall organization. B. flat organization. C. leveraged organization. D. coordinated organization. B. flat organization
#3 Today's preference to flat vs. tall organization structures is mainly due to a flat organization's ability to: A. encourage esprit de corps among employees in various departments. B. increase the cost of labor through economies of scale. C. respond readily to customer demands. D. increase sales through multiple customer contacts by several layers of management. C. respond readily to customer demands.
#4 Which of the following describes a group of employees from different departments working together on a long-term basis? A. Focus group B. Mixed function groups C. Cross-functional self-managed teams D. Intrapraneurial teams C. cross-functional self-managed teams
#5 In a _____________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects. A. matrix B. line C. line-and-staff D. centralized A. matrix
Employees and their Functions
#1 ________ refers to the process of dividing organizational functions (sales, production, accounting/bookkeeping) into separate units. A. Coordination B. A chain of command C. Empowerment D. Departmentalization D. Departmentalization
#2 HipHop Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that HipHop departmentalizes by: A. process. B. function. C. user group. D. tradition. B. function
#3 A ____________ organization is characterized by direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor. A. matrix B. cross-functional C. line D. line-and-staff C. line
#4 __________ are responsible for directly achieving organizational goals. A. Organizational specialists B. Line personnel C. Chain of command managers D. Staff personnel B. Line Personnel
#5 Employees who perform functions that advise and assist line personnel are known as: A. middle managers. B. empowered workers. C. secondary employees. D. staff personnel. D. staff personnel
Final Question
The process of rating an organization's practices, processes, and products against the best of the world is known as: benchmarking

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